Apar Industries Limited · NSE:APARINDS
Apar Industries — Investor Presentation (July 2024)
68 slides from Apar Industries's investor presentation, Jul 30, 2024
Slide 1: Exchange filing cover letter for corporate presentation
SEC/3007/2024 By E-Filing July 30, 2024 National Stock Exchange of India Limited BSE Limited “Exchange Plaza”, Corporate Relations Department, C-1, Block G, Phiroze Jeejeebhoy Towers, Bandra- Kurla Complex, Dalal Street, Bandra (E), Fort, Mumbai – 400 051. Mumbai - 400 001. Scrip Symbol : APARINDS S
Slide 2: Corporate Presentation – July 2024
Ascending Passionately, Achieving Responsibly CORPORATE PRESENTATION – July 2024
Slide 3: Table of contents
Table of contents 04 57 04 COMPANY OVERVIEW COMPANY OVERVIEW 57 FINANCIAL OVERVIEW FINANCIAL OVERVIEW 63 ANNEXURES 65 SHAREHOLDING PATTERN
Slide 4: Safe harbour
Safe harbour This presentation may have certain statements that may be “forward looking” including those relating to general business plans and strategy of APAR Industries Ltd., its outlook and growth prospects. The actual results may differ materially from these forward-looking statements due to se
Slide 5: Company Overview
COMPANY OVERVIEW
Slide 6: APAR Industries: Tomorrow's solutions today
APAR Industries: Tomorrow’s solutions today #1 3rd #1 16,153 Cr Largest global aluminium & Largest global manufacturer of Cables manufacturer for FY24 Revenue, ($1.95 bn) alloy conductors’ manufacturer Transformer oils renewables in India 5-year CAGR at 15.2% Our Strengths Trusted Manufacturer and s
Slide 7: Our Businesses
Our Businesses Leading the innovation curve as the world’s 3rd largest transformer oil manufacturer and with a comprehensive range of over 350 products in speciality oils, process oils & lubricants. Largest exporter of Transformer oils from India. Leading the innovation curve as the largest one-stop
Slide 8: What drives us
What drives us Our Mission (Why we exist): Our Values: To design & manufacture Building Blocks for Energy Infrastructure, Transportation & Telecommunication Sectors that contribute meaningfully to make this world a more energy efficient, environmentally sustainable and safer place. A P A R I A N Our
Slide 9: Our 65+ years of legacy (1/2)
Our 65+ years of legacy (1/2) Company incorporated Greenfield expansion to meet Diversification into State-of-the-art R&D unit Greenfield expansion with conductor business growing oils demand auto lubes segment setup at Rabale to meet growing conductors (setup Rabale oils plant) (license agreement w
Slide 10: Our 65+ years of legacy (2/2)
Our 65+ years of legacy (2/2) Only Indian company to supply 1st Indian player to create Achieved record Introduced Dull finish conductors all major HVDC projects with guidance OFC for torpedoes highturnover of Rs. 14,352 Rs 1,000 crores with special surface treatments Transformer Oils 1st Indian com
Slide 11: Well-diversified across industries & segments
Well-diversified across industries & segments Conductors Specialty Oils o One of the largest global manufacturers o 3rd largest global manufacturer of T-oils o Pioneered turnkey solutions for reconductoring with HEC, live line o 1st globally to supply the entire range of T-oils compliant to new inst
Slide 12: Extensive global presence driving exports
Extensive global presence driving exports Prominent presence with established Utilities, EPC’s & channel partners in USA Canada Mexico Colombia Brazil Peru Chile Spain France Great Britain Romania Norway Sweden Finland Poland USA Canada Australia Brazil Columbia Italy Montenegro North Macedonia Aust
Slide 13: Industries we cater to
Industries we cater to 03 Renewable Railways Energy 04 Defence Transformers Mining 05 Industrial 02 Nuclear Atomic Telecommunication & Data Communication Motors & 01 Generators 06 Power Transmission 08 Shipping & Distribution Wires & Cables 07 12 Corporate Presentation – July 2024
Slide 14: APAR Group – House of Brands
APAR Group – House of Brands 13 Corporate Presentation – July 2024
Slide 15: APAR's State-of-the-Art facilities strategically located
APAR’s State-of-the-Art facilities strategically located Manufactures: Cables Gujarat Umbergaon Manufactures: Conductors Jharsuguda Odisha Manufactures: Wires & Cables Maharashtra Manufactures: Khatalwada Conductors Lapanga Manufactures: Polymers Manufactures: Umbergaon Conductors Rabale Silvassa Ma
Slide 16: Conductors – One of the largest global manufacturers
Conductors – One of the largest global manufacturers Conventional HTLS Conductors Railway Conductors Specialty Alloy Rods OPGW Conductors ACS Wire CTC/PICC Turnkey Solutions BUSBAR Strong leadership & competitive edge Strategic focus on higher-value products FY24 revenue of INR 8,031 crore, 5 years
Slide 17: Transformation journey of APAR Conductors
Transformation journey of APAR Conductors o Bus Bar is launched for use in high voltage & low voltage equipment o Added 2 more factories in Silvasa o Introduced Copper Railway (Khanvel & Chandra Proteco) to o Introduced a premium product line conductors as per RDSO o One of the first company to succ
Slide 18: Product Portfolio - Copper Rods/Wires/Busbars/Strips
Product Portfolio - Copper Rods/Wires/Busbars/Strips Industries we cater to, o Switchgear Industries Copper alloy rod Copper strips Copper busbar o Electrical Panel Manufacturers o Electrical Substations Copper wire Copper conductor Sections copper 17 Corporate Presentation – July 2024
Slide 19: Product Portfolio - Turnkey Projects
Product Portfolio - Turnkey Projects HTLS HTLS OPGW CONVENTIONAL Transmission Distribution Live Line EPC SUBSTATION AUGMENTATION TELECOM INTEGRATION Other HTLS EPC – MVCC EPC– UG CABLE 18 Corporate Presentation – July 2024
Slide 20: Growth drivers – Conductors
Growth drivers – Conductors o Completed 165+ turnkey solution projects o Delivered 2,06,633 MT of Conductors o Premium products contribution - 45% of revenues o New order inflow – up 20% o Green initiatives to reduce carbon intensity in operations o All time high revenue in FY 2024 19 amounts in INR
Slide 21: Competitive advantage – Conductor
Competitive advantage – Conductor Exports mix in total conductor division – 44.9% in FY 24 Premium products o Technology & know-how involved in product and design, acting as a barrier to entry for competition o Special stringing mechanism with sophisticated equipment to protect the carbon composite
Slide 22: Specialty Oils & Lubricants – 3rd largest in Transformer Oils globally
Specialty Oils & Lubricants – 3rd largest in Transformer Oils globally Transformer oil White oils Industrial & process oils Industrial & auto lubricants Petroleum jelly POWEROIL TO NE premium Strong leadership & competitive edge Leading domestic player in auto lubes. INR 222 crore invested in FY17-F
Slide 23: Understanding our speciality oils business
Understanding our speciality oils business o APAR is India’s largest Private manufacturer and exporter of Speciality oils o World’s 3rd Largest Transformer Oil manufacturer o Production capacity of 7,50,000+ KL in India & 1,75,000+ KL in UAE TRANSFORMER TECHNICAL PHARMACEUTICAL RUBBER OILS GRADE WHI
Slide 24: Lubricant Product Range (Auto + Industrial)
Lubricant Product Range (Auto + Industrial) AUTOMOTIVE LUBRICANTS INDUSTRIAL LUBRICANTS On Road Off Road Maintenance Metal Working Motorcycle Passenger Diesel Construction Agricultural Reduction Hydraulic Turbine Compressor Soluble & Neat Quenching Oils Car oils Engine Oils & Infrastructure Oils Gea
Slide 25: Growth drivers – Specialty Oils & Lubricants
Growth drivers – Specialty Oils & Lubricants o 500+ Grade Oils o Total volume 5.37 lac KL of speciality oils during the year o Global transformer oils volumes up 15% vs. FY23 o Serving 140+ Countries o Launched best-in-class 99% biodegradable natural ester transformer oil 24 amounts in INR crore Cor
Slide 26: Competitive advantage – Specialty Oils & Lubricants
Competitive advantage – Specialty Oils & Lubricants Exports mix in total oil division – 45.8% in FY 24 o 3rd largest global player in transformer oils. o Diversified customer base and industries served viz., OEM's, Pharma, Tyres, Cosmetics, Auto Lubricants etc. o Limited organised players. o Approva
Slide 27: Cables - Largest domestic player in renewables
Cables - Largest domestic player in renewables Power cables House wire & cable Elastomeric cables E-beam irradiated cables OFC Speciality hybrid cables Strong leadership & competitive edge Strategic focus on higher-value products FY24 revenue of INR 3,859 crore, 5 years CAGR at 18.0% INR 604 crore i
Slide 28: Cable Solutions – Diversified Product Portfolio
Cable Solutions – Diversified Product Portfolio ELASTOMERIC CABLES FOR POWER CABLES HOUSE WIRES CABLE & E-BEAM & WIRES AND FLEXIBLES USA MARKET HARNESS CABLES Building Wire o Automotive & EV o XLPE LV Power Cables o Solar Cables o House Wires o RW75/RW90/RHH/RHW/RHW- XLPE MV Power Cables o Windmill
Slide 29: Serving diversified sectors
Serving diversified sectors o E-beam technology for house wiring - first mover advantage and the only company using this technology giving the product a 50-year life, melt resistant and flame retardant till 105 degrees. o India’s only Cable company with 4 e-Beam irradiation facilities. Power Transmi
Slide 30: Growth drivers – Cable Solutions
Growth drivers – Cable Solutions o India’s only Cable company with 4 e-Beam irradiation facilities. o Leading player in the renewable space in India (solar & wind cables). o Large number of UL certificate of compliance from India for sale of cable in the United States. o Wide range of cable & indust
Slide 31: Channel expansion in our Light Duty Cable business
Channel expansion in our Light Duty Cable business CH A NNEL EX PA NS ION 2022 2023 2024 DISTRIBUTOR PRESENCE 19 120 339 RETAIL COUNT PRESENCE 276 2395 5833 ACTIVE STATE PRESENCE 2 13 18 DEMOS 6348 35353 76533 ELECTRICIAN MEETS 474 3373 7236 30 amounts in INR crore Corporate Presentation – July 2024
Slide 32: Competitive advantage – Cable Solutions
Competitive advantage – Cable Solutions Exports mix in total cable division – 38.3% in FY 24 o E-beam technology for house wiring - first mover advantage and the only company using this technology giving the product a 50-year life, melt resistant and flame retardant till 105 degrees. o India’s only
Slide 33: APAR Telecom Solutions
APAR Telecom Solutions Diversified Telecom Solutions as a separate a business vertical to bring more focus and garner maximum growth potential: Market Dynamics Focus Areas o Connected world with near zero latency o Converged networks o Cloud shift from hyperscale to edge o Data centres o Blockchain
Slide 34: Digitalisation taking data growth to new levels…
Digitalisation taking data growth to new levels… Current use cases Global Data Consumption per user Global mobile Data traffic in EB/month GB per smartphone Video Consumption 60%+ of total traffic high uploads, creation Gaming & Software Downloads Social Networking with heavy rural and cross demogra
Slide 35: Advent of 5G and densification of small cells
Advent of 5G and densification of small cells 10X Faster than 4G| 16X Cell Density as compared with 4G 3G 4G 5G 1000 10 Km 10 Km 10 Km < 1 ms Peak Data Rate - Mbps 10 Km 10 Km 10 Km 1 Site 1 Site 1 Site Every 10 KM Every 2 KM Every 0.5 KM 100 25x 16x 63 1 15 CELL DENSITY (Cell/ 100 Sq.Km.) CELL DENS
Slide 36: Using customer centric innovations to capture future markets
Using customer centric innovations to capture future markets Innovation on Creating new products Crafting full solutions – individualproduct level to drive TCO benefits deployment ready solutions APAR Micro Cables and APAR hybrid cable is a APARsolutions for Wind-mills is Fire Resistant products uni
Slide 37: Globally, we see growth opportunities in
Globally, we see growth opportunities in Addition of Transmission Infrastructure Renewable energy Expansion Development Wind, Solar & Nuclear Public Transportation Manufacturing, Telecom (incl Mobility) China + 1 36 Corporate Presentation – July 2024
Slide 38: Corporate Presentation – July 2024
37 Corporate Presentation – July 2024
Slide 39: Corporate Presentation – July 2024
38 Corporate Presentation – July 2024
Slide 40: Addition of Renewable energy
Addition of Renewable energy SECTOR OPPORTUNITY APAR ADVANTAGE o Solar Installed capacity is expected to grow by 225 GW& o Leader in the domestic solar cable segment and most Wind installed capacity is expected to grow by 55 GW dominant player in domestic wind market with over during 2024 to 2030 in
Slide 41: Renewables – strong opportunity for all business verticals
Renewables – strong opportunity for all business verticals Renewable Power Generation Power Transmission (Sub Station/Grid) Power Distribution String Cables,Low Voltage Cables, Nacelle Wiring, Torsion Transformer Oil, CTC Conductors PICC Conductors, T&D Traditional Application based Cables and Wires
Slide 42: Public transportation (incl. Mobility)
Public transportation (incl. Mobility) SECTOR OPPORTUNITY APAR ADVANTAGE o Infrastructure investments in Indian railways, Metros and o Supply of locomotive coaches, forward integration into High-speed rail to grow exponentially harness. Largest cables supplier for Vande Bharat trains o Market leader
Slide 43: Infrastructure growth, Manufacturing, China+1
Infrastructure growth, Manufacturing, China+1 SECTOR OPPORTUNITY APAR ADVANTAGE o Governments are allocating investments in building o Lubricants for off road equipment for infrastructure Infrastructure extensive road networks for freight transportation, ports, development which includes, cranes, ro
Slide 44: Transmission expansion
Transmission expansion SECTOR OPPORTUNITY APAR ADVANTAGE o 80,000 ckm of transmission lines added and 350,000 o Distributed sites for renewable energy requires MVA of transformation capacity added in last 5 years in application of Conductors, Cables & transformer oils in India renewable generation s
Slide 45: Telecom
Telecom SECTOR OPPORTUNITY APAR ADVANTAGE o Digital transformation evolving faster o End to end telecom solutions provider for hybrid copper and fibre cables o The GB per smartphone will grow 25% CAGR shall reach 55 GB per mobile till 2028 in India o 10 bn mobile connections with 64% mobile internet
Slide 46: Well-defined Risk Management framework in existence
Well-defined Risk Management framework in existence Customer / Credit Risk Management: o Structured process of evaluating customer & end customer background. o Defined practices for setting up of credit limits. o Process for securing credit thru various means. o In-house business-legal teams within
Slide 47: Organisational structure – Senior leadership
Organisational structure – Senior leadership Board of Directors Managing Independent Directors/Director Directors Oil Conductor Cable CFO CHRO Treasury ESG CS CE0 Conductors Business Heads & Telecom CEO – Cable - B2B Solutions Business Head - Projects Operational Business Head - Heads Exports Market
Slide 48: Strong financial performance sustained over the years
Strong financial performance sustained over the years Consolidated Revenue Exports contribution at 37.0% in Q1 FY25 EBITDA * Export Domestic 3 3 3 3 3 3 3 3 3 FY21 FY22 FY23 FY24 Q1FY25 FY21 FY22 FY23 FY24 Q1FY25 FY 21 FY 22 FY23 FY24 Q1FY25 Conductors Revenue Specialty Oils & Lubricants Revenue Cab
Slide 49: Key financial ratios
Key financial ratios Debt/ Equity Ratio (x) Net Fixed Asset Turnover Ratio (x) . . 3. . . . . 3 . . . FY20 FY21 FY22 FY23 Q1FY25 FY20 FY21 FY22 FY23 Q1FY25 ROE (%) EPS Conductor Oil Cable Others 212.1 230.0 .3 3 .3 166.6 . 180.0 . 5 . .3 . 3 .3 130.0 . 67.1 . . 50.4 * 80.0 41.9 0. .3 0. . 0. 0 0. 3.
Slide 50: Making this world a better place - ESG
Making this world a better place - ESG As per CRISIL ESG Rating report: RELEASES THREE ESG REPORTS RANKED 3RD AMONG INDUSTRIAL SECTOR Chart Description automatically generated Chart Description automatically generated with low confidence KEY METRICS (FY 2022-23) FY 2021-22 FY 2020-21 104,928 tCO e G
Slide 51: Major milestones
Major milestones TCFD Report ESG rating by CRISIL 3rd party certification CDP disclosure We prepared our first TCFD (Task force on APAR’s name has found a place in the CRISIL GHG emissions (Scope-1 and Scope-2) and We disclose our climate related emissions to CDP Climaterelated Financial Disclosures
Slide 52: CRISIL rating
CRISIL rating o CRISIL had started ESG rating of top listed Indian companies since 2021. First such rating was done last year, and the report was released in June 2021. o 2nd such rating was done in 2022 for 586 top Indian companies, and report was released on 19th May 2022 o APAR’s name has found a
Slide 53: Doing good for society - healthcare
Doing good for society - healthcare DR. N.D DESAI, FACULTY OF MEDICAL DHARMSINH DESAI UNIVERSITY DHARMSINH DESAI MEMORIAL SCIENCE & RESEARCH (DDU) METHODIST HEART INSTITUTE Gujarat Gujarat Gujarat Free Multi-speciality hospital with Established in 1968 Offers Provides world-class cardiac care 800
Slide 54: Doing good for society – Education and Nutrition
Doing good for society – Education and Nutrition ANAMRITA FOUNDATION GOVARDHAN ECO VILLAGE SUPPORTING TOMORROW’S DREAMS Provides Free midday meals in 21 India’s 3rd largest skill Supporting technical high school & cities development centre boys high school at Nadiad Serving 6,500+ schools, 10 S
Slide 55: Key Awards and Accolades in FY 2023-24
Key Awards and Accolades in FY 2023-24 Best Technology Expertise for Speciality Listed among top cable companies Company of the Year Award: Cables Best Renewable Cable Manufacturer Cables by wires and Cables India at EV Manufacturing Excellence Awards Award at Engineering Excellence Award at Net-Zer
Slide 56: Customer mix FY24
Customer mix FY24 Particulars FY24 Exports (of which 10% is renewable cables) 45.2% Industries/Corporate 16.4% Specific industry groups 6.6% OEM's 8.7% EPC - Transmission companies 5.8% Utilities - Transmission companies 7.6% Renewables 4.2% Utilities - Electricity Distribution Boards (Govt. + Pvt.)
Slide 57: Quality of Receivables FY24
Quality of Receivables FY24 Particulars % of Total Secured under various means 57.2% Government Transmission and sector specific companies 18.6% Others (of which 70%+ are with entities where APAR is having business relationship with over 3 years) 24.2% Total 100.0% 56 amounts in INR crore Corporate
Slide 58: Financial Overview
FINANCIAL OVERVIEW
Slide 59: Q1 FY25: Historical high Revenue of ₹ 4,011 crores growing at 6.5%
Q1 FY25: Historical high Revenue of ₹ 4,011 crores growing at 6.5% v/s LY. EBITDA margin continues to be healthy at 9.8% Particulars Q1 FY25 Q1 FY24 % Change Q4 FY24 % Change Revenue from Operations 4,011 3,767 6.5% 4,455 (10.0%) EBITDA post open period forex 394 369 6.8% 457 (13.8%) EBITDA Margin 9
Slide 60: Conductors: Q1 FY25 highlights
Conductors: Q1 FY25 highlights Particulars Q1 FY25 Q1 FY24 % Change Q4 FY24 % Change Revenue 1,936 1,774 9.1% 2,328 (16.9%) Sales volume (in MT) 48,619 45,565 6.7% 56,299 (13.6%) EBITDA post open period forex 187 177 6.1% 273 (31.3%) EBITDA post open period forex (per MT) 38,532 38,740 (0.5%) 48,453
Slide 61: Speciality Oils & Lubricants: Q1 FY25 highlights
Speciality Oils & Lubricants : Q1 FY25 highlights Particulars Q1 FY25 Q1 FY24 % Change Q4 FY24 % Change Revenue 1,265 1,192 6.1% 1,210 4.5% Sales volume (in KL) 1,38,357 1,30,654 5.9% 1,37,090 0.9% EBITDA post open period forex 96 78 23.3% 58 64.4% EBITDA post open period forex (per MT) 6,935 6,035
Slide 62: Cables: Q1 FY25 highlights
Cables : Q1 FY25 highlights Particulars Q1 FY25 Q1 FY24 % Change Q4 FY24 % Change Revenue 1,042 967 7.8% 1,086 (4.1%) EBITDA post open period forex 107 110 (2.6%) 123 (12.9%) EBITDA post open period forex (% of revenue) 10.3% 11.4% (1.1%) 11.4% (1.1%) o Revenue for the quarter grew by 7.8%. Ex-US re
Slide 63: Q1 FY25 Division-wise EBITDA to PAT
Q1 FY25 Division-wise EBITDA to PAT Particulars Oil Conductor Cable Others Total EBITDA pre-open period forex (Note 1) 97 189 107 3 397 Open period forex (Note 2) 1 2 0 0 3 EBIDTA post open period forex 96 187 107 3 394 Finance cost (ex open period forex) (Note 3) 24 33 14 0 72 Unallocable forex los
Slide 64: Annexures
ANNEXURES
Slide 65: Q1 FY25: Consolidated Profit & Loss Statement
Q1 FY25 : Consolidated Profit & Loss Statement Particulars Q1 FY25 Q1 FY24 % Chg YoY Q4 FY24 % Chg QoQ Gross Sales 3,984 3,736 6.6% 4,433 (10.1%) Other Operating Income 27 31 (14.6%) 23 18.3% Total Revenue from Operation 4,011 3,767 6.5% 4,455 (10.0%) Other Income 16 14 17.0% 27 (40.9%) Total Income
Slide 66: Shareholding Pattern
SHAREHOLDING PATTERN
Slide 67: Q1 FY25 Market performance and shareholding structure
Q1 FY25 Market performance and shareholding structure APAR has been consistently outperforming market 250 239% 200 150 178% 121% 100 Apar Capital Goods Sensex Chart has been re-based to 100 As on June 30, 2024 Outstanding shares – 4,01,68,315 10.3% Major Non-Promoter Shareholders Shareholding (%) 0.
Slide 68: Thank You
For Institutional enquiries Mr. Amey Gogate Investor Relations Mr. Ambesh Tiwari Contact No : +91 22 67800400 Contact No : +91 84248 93404 E-mail – amey.gogate@apar.com E-mail – ambesh@s-ancial.com #215, Shiv Shakti Industrial Estate, 2Nd Floor, Address: APAR house, Bldg no. 4 & 5, For Investor Grie